Did you know getting life insurance is part of estate planning?
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Did you know getting life insurance is part of estate planning?

On Behalf of | Sep 21, 2021 | Estate Planning

Insurance can be a tricky topic to navigate for various reasons. First, there are many types of insurance, and some Florida residents may not see the necessity in some of those types. Second, coverage options can be confusing, and it is not always clear what someone will get from his or her policy. However, if individuals are thinking about foregoing life insurance, they may want to think again, particularly in regard to its association with estate planning.

Too often, individuals overlook just how helpful life insurance could be to an estate plan. In fact, some people may not even consider getting life insurance as part of their estate planning process. It may simply be something that individuals have because it was offered through their employer or because they felt it would be useful to their spouse or children in the event of their untimely demise.

Fortunately, having life insurance could be beneficial to overall estate planning in the following ways:

  • It could help cover estate taxes for particularly wealthy estates.
  • It could provide funds for a guardian who needs to care for minor children in the event of their parents’ passing.
  • The beneficiaries of the policy do not have to worry about paying taxes on the payout because the estate is typically taxed for it.
  • Life insurance could act as an extra asset to provide when other property may be meant for other beneficiaries, such as naming a new spouse as the policy beneficiary while other assets go to children from a previous marriage.

While some people may have a take-it-or-leave-it approach to life insurance, it may be worth including as part of the estate planning process. If Florida residents have questions about how this type of policy could benefit their estate, they may wish to discuss their specific cases with experienced attorneys. These legal professionals could offer useful insight into how life insurance could come into play.